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Statistical measure of the degree to which the movements of two variables (stock/option/convertible prices or returns) are related. See: Correlation coefficient.
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The relationship between two variables during a period of time, especially one that shows a close match between the variables' movements. For example, all utility stocks tend to have a high degree of correlation because their share prices are influenced by the same forces. Conversely, gold stock price movements are not closely correlated with utility stock price movements because the two are influenced by very different factors. The concept of correlation is frequently used in portfolio analysis. See also serial correlation.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


In investment terms, correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions.

Correlation is measured on a scale of - 1 to +1. Investments with a correlation of + 0.5 or more tend to rise and fall in value at the same time. Investments with a negative correlation of - 0.5 to - 1 are more likely to gain or lose value in opposing cycles.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


a statistical term that describes the degree of association between two variables. When two variables tend to change together, then they are said to be correlated, and the extent to which they are correlated is measured by means of the CORRELATION COEFFICIENT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005


A former appraisal term, replaced by reconciliation.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The GLD also has a slightly negative 0.15 correlation with the SPY as well.
Heritability estimates for conformation traits are presented in Table 2 and genetic and phenotypic correlations between body measurements, LMY and LL are given in Table 3.
Melgaco developed a regression equation for the Brazilian population with the highest reported value of correlation and determination coefficient.19 The method was found to have a higher predictive value than other popular methods.20 The rationale of this study is to test the Melgaco regression equation in the mandibular arch in class II division 1 malocclusion.
The temperature is definitely rising, however, and that creates new uncertainty, which feeds into instability in short-term correlations.
Lastly, the bilateral STN showed widespread positive correlations with entire cortical areas excluding temporal lobe and INS.
In the current study, we performed a comprehensive analysis of the correlations among imaging biomarkers as well as between imaging biomarkers and clinical parameters.
As the level of variability of the variables is not similar, the canonical correlations will be calculated for the standardised variables which correspond to the use of correlation matrix rather than the covariance matrix in the analysis.
On other hand, path analysis measures both direct and indirect effects of one trait upon other by splitting the correlation coefficient into direct and indirect effect [3].
In general, the long-term correlation between the peso and the stock market based on historical data since year 2000 is about 26.5 percent.
In the present investigation, the estimates of genetic correlation coefficient between all the characters studied, showed close parallelism in direction with their corresponding phenotypic correlation coefficients.
Under irrigated condition, significantly positive correlations of phenotypic and genetics exist between Gs at early filling and middle stages and drought resistance index (Table 4), but the environmental correlations between them were not significant, showing that the correlation variations were mainly from genes.
Over northern China, higher correlation coefficients were found when indices without regard for frost were compared with those including the frost criteria and both had the same length of the spells exceeding the 5[degrees]C temperature threshold, and lower correlations were observed when the length of indices was different and one of the indices included the frost criteria or EI 3 (10 d < 5[degrees]C) was included in the combinations.